MEMORANDUM OF SETTLEMENT BETWEEN

HINDUSTAN PETROLEUM CORPORATION LTD.

AND

ITS WORKMEN REPRESENTED BY THE UNIONS

(MUMBAI REFINERY)

May 23, 2002

MEMORANDUM OF SETTLEMENT

MEMORANDUM OF SETTLEMENT ARRIVED UNDER SECTION 18(1) OF INDUSTRIAL DISPUTES ACT 1947, ON 23.05.2002, ON THE CHARTER OF DEMANDS BETWEEN MANAGEMENT OF HINDUSTAN PETROLEUM CORPORATION LIMITED, AND THEIR WORKMEN IN MUMBAI REFINERY REPRESENTED THROUGH TRADE UNIONS OPERATING IN MUMBAI REFINERY ON THE FOLLOWING TERMS.

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Background: A Memorandum of Settlement covering wages and other service conditions which was signed on April 17, 1996, between the Management of Hindustan Petroleum Corporation Ltd and its Workmen represented by the Unions operating in Mumbai Refinery expired on September 30, 1998. On expiry of the said Memorandum of Settlement, the Unions submitted their Charter of Demands for commencing the negotiations on the Long Term Settlement. In the meanwhile, the Department of Public Enterprises, Ministry of Industry, Government of India, vide Office Memorandum No. P.2(11) 96/DPE (WC) dated 14.1.1999 issued the Policy guidelines for the Sixth round of wage negotiations. Further, Ministry of Heavy Inustries and Public Enterprises (Department of Public Enterprises) Government of India vide Office Memorandum No.P.2(11) 96-DPE (WC)-GL-XXVII dated 26.7.2000. As per the said notification, the Unionised workmen were to be given an option either for a 10 years wage settlement period with 100% neutralisation of DA or 5 years wage settlement period with graded neutralisation of DA. Accordingly, preliminary rounds of LTS meetings were held with Unions operating in Mumbai Refinery, wherein, the Management gave separate offers for 5 years period and 10 years period. Both the Unions operating in Mumbai Refinery opted for 10 years wage settlement period. Subsequently several rounds of meetings were held between the Management and the Unions for finalising the Long Term Settlement. Meanwhile, Petroleum Employees Union operating in Mumbai Refinery, had given Strike Notices dated April 17, 2001 and September 12, 2001. HPKU has also given strike notice dated 12.10.2001 demanding for early finalisation of Long Term Settlement and Promotion Policy. Hence, the matter was seized in Conciliation and the Regional Labour Commissioner (Central) Mumbai held the Conciliation proceedings on 27.09.2001. The RLC has advised all the parties to hold bilateral discussions. Bilateral discussions were held on 23rd & 24th May 2001, 19th to 21st June 2001, 28th to 30th August 2001, 4th & 5th of October 2001, 29th & 30th October 2001, 1st & 2nd of November 2001, all at Mumbai, 9th to 11th of November 2001 at Lonavala, 28th to 30th November 2001, 3rd/4th January 2002 and 1st to 5th March, 2002 at Mumbai. Further during the Meeting held on 20-23rd May 2002 a Memorandum of Settlement was reached between the parties on the demands submitted by the Unions on 23rd May 2002.

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TERMS OF SETTLEMENT

INTENT AND OBJECT OF THE SETTLEMENT: The Intent and the Object of the Settlement is to maintain and promote harmonious industrial relations between the Corporation and its workmen at Mumbai Refinery with a view to achieve prosperity of both the Corporation and the workmen. The spirit of the Settlement is of mutual understanding between the Management and the Unions. The Unions and the Management realised that in return for substantial wage rise and enhanced benefits given by the Corporation, the workmen have to share additional obligations which would not only enable the Corporation to absorb the additional financial burden due to this Settlement, but would also improve its competitive status in the Oil Industry. The Unions and the Corporation agree that in view of the increased competitive environment in the domestic and global market, the Corporation can gain competitiveness only by improving operational capabilities of Refinery, productivity and ensuring better quality in all its operation and activities by means of optimum utilisation of the plant, machinery, equipment, manpower and other resources at its disposal. Therefore, both the parties agree to introduce new technology, upgrade the existing technology, work re-organisation/ simplification, optimum utilisation of all the existing resources, elimination of wasteful practices etc. The Union / workmen agreed to extend full cooperation in implementing the above activities and thereby enhancing the productivity and profitability of the Corporation. 1) APPLICABILITY2) PERIOD OF SETTLEMENT3) TERMS OF UNDERSTANDING4) FITMENT METHODOLOGY5) SALARY SCALES6) STAGNATION PAY7) PERSONAL PAY8) ANNUAL INCREMENT9) PROMOTIONAL INCREMENT10) DEARNESS ALLOWANCE11) HOUSE RENT ALLOWANCE12) CITY COMPENSATORY ALLOWANCE13) SELF LEASE14) LEAVE FARE ASSISTANCE (LFA) AND LEAVE TRAVEL CONCESSION (LTC)

ACTUALS OR LFA (ENCASHMENT)15) ACTING ALLOWANCE16) TRANSPORTATION BENEFITS17) CHILDREN EDUCATION ALLOWANCE

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18) CASH HANDLING ALLOWANCE19) WASHING ALLOWANCE20) SHIFT ALLOWANCE21) CALL BACK ALLOWANCE22) DUTY ALLOWANCE23) MEAL ALLOWANCE24) ATTENDANCE BONUS25) ASPHALT ALLOWANCE26) CORPORATION'S ASSISTANCE TO DRIVERS27) REDEPLOYMENT / RETIREMENT BENEFITS28) COMPUTER COMPENSATION29) FESTIVAL ADVANCE30) FURNITURE LOAN31) CONVEYANCE FOR ATTENDING TRAINING PROGRAM 32) TWO WHEELER VEHICLE LOAN33) COMPUTER LOAN IN LIEU OF REPEAT TWO WHEELER VEHICLE LOAN 34) DAILY ALLOWANCE / TRANSPORTATION 35) WORKING HOURS 36) OVERTIME PAYMENT 37) JOB FLEXIBILITY38) RATIONALISATION MEASURES 39) LEAVE ADMINISTRATION 40) NATIONAL / FESTIVAL HOLIDAYS41) UNAUTHORISED ABSENTEEISM 42) LABORATORY43) SAFETY44) ATTENDANCE RECORDING SYSTEM45) PAY ANOMALY46) PAYMENT OF ARREARS47) CONVERSION TO MOS48) INTERPRETATION / IMPLEMENTATION OF SETTLEMENT

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1) APPLICABILITY: This settlement will be applicable to all the permanent workmen including probationers who

are on the payroll of the Mumbai Refinery as on the date of signing of this Settlement and also to those who will come on the permanent payroll of the Corporation in the Mumbai Refinery subsequent to the date of signing of the settlement.

2) PERIOD OF SETTLEMENT:

This Settlement will be valid for a period of 10 years commencing from October 01, 1998 to September 30, 2008 and shall continue to be operative until replaced by a fresh Settlement.

3) TERMS OF UNDERSTANDING:

a. To abide by the Terms of this Settlement in respect of full and final claims arising out of the demands raised by the Unions and those which were under discussions and negotiations, unless provided for otherwise and specifically.

b. That the existing service conditions and benefits not varied or altered herewith, will

be deemed to have been covered as under this Settlement and they will continue to be the same unless altered jointly by mutual understanding or under legal machinery.

c. To co-operate in creating a climate of healthy industrial relations, work environment

for generating and maintaining self discipline, improving efficiency and productivity, meeting production and sales plan, encouraging performance of a fair day’s work by workmen, job security, job satisfaction and quality of life.

d. To make earnest efforts to resolve through mutual discussion, any difference or

disputes that might arise during the pendency of the Settlement due to change in circumstances or Government policies through mutual discussions and peaceful orderly legitimate methods if such dispute are not resolved within reasonable time limit.

e. Not to raise or pursue any demands involving directly or indirectly any additional

financial commitment on the part of the Corporation during the operative period of this Settlement.

f. The Management agrees not to take any unilateral action / decision which may

adversely affect the interest of the community of workmen without giving reasonable and prior intimation to and discussions with the Unions. Similarly, the Unions / Workmen agree not to take any unilateral action / decision which will adversely affect the production and essential supply / operation directly or indirectly without giving a reasonable notice to the Management to resolve the issues.

4) FITMENT METHODOLOGY:

A. To arrive at the Revised Basic Pay in respect of those workmen who are on the payroll of Mumbai Refinery of the Corporation as on 30.09.1998, the fitment methodology will be as follows :

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a. Basic Pay and Personal Pay (if any) as on 30.9.1998.

Plus

b.20% of (a) Plus

c. Merger of VDA applicable between AICPI 1099 to 2010 at varying

neutralisation rates. Plus

d.All Fixed Dearness Allowance as on 30.09.98 Plus e. Additional Fitment Benefit:

i) Based on Basic Pay as of 30.09.1998 (Including P.Pay, if any) Upto Basic of Rs.3000 - Rs. 1250/- 3001 - 3250 - Rs. 1275/- 3251 - 3500 - Rs. 1300/- 3501 - 3750 - Rs. 1425/- 3751 - 4000 - Rs. 1625/- 4001 - 4250 - Rs. 1825/- 4251 - 4500 - Rs. 2000/- 4501 and above - Rs 2200/-

ii) Based on service in Mumbai Refinery as of 30.09.1998 : (on Basic + Personal Pay as of 30.09.1998) Upto 5 years of service : 0.25% (without cumulative effect) 6th year of service to 15th year : 0.25% (with cumulative effect) for ever completed year of service (Max. 2.5%) 16th year of service onwards : 0.5% for every completed year of till 30th year service (Max. 7.5%) 30 years and above : 10.25% The fraction of the completed year of service as of 30.09.1998 shall be prorated as follows: Upto 3 months - Nil Above 3 months & upto 9 months - ½ of the year 9 months & above - Full year

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iii) Those workmen who are drawing Basic pay of Rs. 4550/- & above (including all Personal Pay, if any) as on 30.09.98 will be eligible to receive 2% on the sum of (a) + (b) + (c) + (d) + (e) (i) & (ii) . The total arrived at as above will be the Revised Basic Pay as on 1.10.98 after rounding off the amount to the nearest Rupee 1/-.

Thereafter, the workmen shall be granted the following percentage on the Revised Basic

Pay, as LTS benefit. However, the same shall be treated as Personal Pay.

R - 01 to R - 04 : 6% of Revised Basic pay R - 05 & R - 08 : 7% of Revised Basic pay R - 09 : 8% of Revised Basic pay

B. To arrive at the revised Basic Pay in respect of those workmen who had joined the payroll of the Corporation on or after 1.10.98 till the date of signing of the settlement, the fitment methodology will be as follows :

a.Basic Pay as on date of joining Plus b.20 % of Basic Pay Plus c. Merger of VDA applicable between AICPI 1099 and 2010 at varying neutralisation rates. Plus d. Applicable FDA as of date of joining. Plus e. Additional fitment of Rs. 1250/- The total arrived at as above will be the Revised Basic pay after rounding off the amount to the nearest Rupee 1/-.

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5) SALARY SCALES:

A. The maximum scales for the workmen who are on the payroll of the Mumbai Refinery of the Corporation as of date of signing the settlement and continued to be on the payroll of the Corporation are given hereunder:

Grade Maximum of the Scale (Rs.) � R-01 8,070 R-02 8,650 R-03 9,725 R-04 10,320 R-05 10,915 R-06 11,455 R-07 13,535 R-08 14,335 R-09 15,070

R-10* 16,625 * Created effective 23.5.2002

B. The workmen who will be recruited in the Mumbai Refinery of the Corporation on or after date of signing of the Settlement will be placed in the minimum of the relevant grade in which they are recruited, as per the salary scales given below :

Grade Minimum of the Scale (Rs.) Maximum of the Scale

(Rs.)� R-00* 3,500 6,000 R-01 4,790 8,070 R-02 4,880 8,650 R-03 4,975 9,725 R-04 5,075 10,320 R-05 5,170 10,915 R-06 5,220 11,455 R-07 5,315 13,535 R-08 5,525 14,335 R-09 5,681 15,070 R-10 5,965 16,625

* R-00 salary scale has been created for those workmen who are recruited in unskilled

category other than the normal recruitment procedure. The Dependents of Deceased Workmen will not be recruited in R-00 grade.

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6) STAGNATION PAY: The workmen who reach the maximum of their pay scales shall be eligible for grant of a

stagnation increment on the due date of annual increment, subject to a maximum of three such stagnation increments. The stagnation increment will be drawn at the applicable rate of annual increment and shall be treated as Basic Pay for all consequential benefits except for promotional increment. The stagnation increment shall be given on the maximum of the Pay Scales and there will be no cumulative effect on the stagnation increments. The Stagnation increment will be made as Stagnation increment 1, 2 and 3 in the succeeding 3 years after reaching maximum of the scale. In case of workmen who draw stagnation increment in the lower grade and subsequently promoted to higher grade and again reaches the maximum scale of the higher grade, in such cases he will be eligible to receive only the remaining number of stagnation increments. For eg. a workman is in Salary Grade R-04 and drawn 1 stagnation increment and promoted to S/G R-05 and again reaches the maximum scale in R-05, he will be entitled to receive only 2 stagnation increments, since he has already drawn 1 stagnation increment in S/G R-04.

7) PERSONAL PAY:

The employees who are in salary grade R-01 to R-08 and have received the Stagnation increment, the same will be merged with the Basic as of September 30, 1998 as given in the Fitment Methodology. The employees who are in salary grade R-09 / R-10 and have received the Stagnation increment, the same will not be merged with the Basic and will continue as Personal Pay. The stagnation increment drawn on or after 1.10.98 will be on percentage basis . The percentage of such stagnation increment will be same as the rate of annual increment and continue as personal pay. The LTS benefit as of 1.10.1998 (as given in the fitment methodology and the Career Development Policy increment granted to all eligible employees under Career Development Policy dated 23.5.2002 will be treated as Personal Pay. Further, those workmen who have been placed in Salary Grade R-10 effective 23.5.2002 will be entitle to receive one increment as Personal Pay in lieu of Promotion, on completion of six years in S/G R-10 (including service credit). The above Personal Pay will be treated as Basic pay for all purposes inclusive of granting annual increment.

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8) ANNUAL INCREMENT:

Effective 01.01.1999, annual increment shall be paid on percentage basis as against the existing pattern of fixed rates of increment in various scales of pay. The rates of annual increment are given as under :

Grade Annual increment % of Basic Pay + P.Pay�

R-00 2� R-01 to R-04 3� R-05 to R-08 3.5� R-09 / R-10 4�

The Workmen who are working in Administrative / Field Departments shall be eligible to receive annual increment subject to his / her working for a minimum period of 90 days / 120 days in the preceeding calender year. For calculating minimum number of working days, Maternity leave, Industrial Injury leave, approved prolonged sick leave, official union meetings, Attending Training programmes and Family Planning casual leave will be considered as ‘Working day’. The annual increment will be paid in the month of January every year. However, in case workmen who have not worked for the minimum number of days as specified above, the annual increment shall be recovered effective January of that year. If due to grant of Annual increment, the Basic Pay exceeds the maximum of the scale, the amount of annual increment shall be so reduced that the Basic Pay plus increment does not exceed the maximum of the applicable scale. At no stage, the Basic Pay shall exceed the maximum of the Pay Scale. 9) PROMOTIONAL INCREMENT: Effective 01.10.1998, in case of Promotion from one grade to another grade, the workmen will be entitled to receive the following percentages: Grade�

Grade % of Basic Pay + P.Pay�

% of Basic Pay + P.Pay �R-00 to R-01�4��R-01 to R-

R-00 to R-01 4 R-01 to R-02 5 R-02 to R-03 5 R-03 to R-04 5 R-04 to R-05 5 R-05 to R-06 5.5 R-06 to R-07 5.5 R-07 to R-08 5.5 R-08 to R-09 5.5 R-09 to R-10 6

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In case a workman is promoted to higher grade which is more than one grade the promotion increment shall be paid at the rate applicable to pre promotional grade plus 2% . In case of those workmen who are in S/G R-09 and received one or more stagnation increment as of date of signing of Settlement i.e 23.05.2002 he/she will be placed in S/G R-10 and will be given 2% of revised Basic Pay at the time of fixation and will be treated as Personal Pay. In case the date of promotion coincides with the annual increment date, the workman will be paid promotional increment first and thereafter the annual increment.

10) DEARNESS ALLOWANCE:

a) VARIABLE DEARNESS ALLOWANCE:

The Variable Dearness Allowance (VDA) applicable to the quarter October - December 1998 based on AICPI points of 2010 at varying neutralisation rates will be merged with the Basic pay as of September 30, 1998 as given in the Fitment methodology. Accordingly, for the quarter October - December 1998, the VDA would be NIL. The revised Dearness Allowance rates with effect from October-December 1998 to April - June 2002 are given in the Attachment ‘A’.

Effective January 1999, the Dearness Allowance rates will be computed on the base average of AICPI points 2010 and will be adopted with 100% neutralisation with periodicity of adjustment being once in every quarter as at present. The Dearness Allowance will continue to be revised and paid on quarterly basis effective 1st January, 1st April, 1st July and 1st October every year.

It is agreed that in the event of Government announcing modification in the percentage of neutralisation of VDA during the pendency of the Settlement, the same will be made applicable with effect from the applicable date as notified by the Government.

b) FIXED DEARNESS ALLOWANCE: Fixed Dearness Allowance as of 30.09.1998 will be merged with the Basic pay as of

September 30, 1998 as given in the fitment methodology. Accordingly, no FDA shall be payable to the workmen w.e.f. 01.10.1998. FDA shall therefore stand abolished w.e.f. 01.10.1998. However, after merger of FDA as on 30.09.1998 or the date of joining ( in respect of those workmen who have joined on or after 1.10.98 and upto the date of signing of the settlement ) the differential amount of FDA if any, paid w.e.f. 01.10.1998 upto the date of signing the settlement, shall not be recovered against the arrears arising out of pay revision.

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11) HOUSE RENT ALLOWANCE:

a) Effective 01.10.1998, workmen will be paid HRA @ 30% of revised Basic salary + Personal Pay if any.

b) For those workmen who are occupying company accommodation the revised monthly

occupancy charges will be announced shortly through an Administrative Circular.

c) Effective date of signing the settlement, the workmen who are claiming HRA against rent receipt will receive the payment of HRA at the admissible present rate of 30% of the revised Basic salary. However, the workmen shall bear the first 10% of basic towards the rent.

It is agreed that in the event of Government announcing revision in rates and/or classification of Mumbai city for the purpose of HRA during the pendency of the Settlement, the same will be made applicable with effect from the applicable date as notified by the Government of India. 12) CITY COMPENSATORY ALLOWANCE:

Effective 01.10.1998, City Compensatory Allowance shall be paid as follows :

Basic Pay Amount per month Below 4,000 Rs. 90� 4,001 - 5,250 Rs. 125� 5,251 - 6,499 Rs. 200�

6,500 & above Rs. 300 It is agreed that in the event of Government announcing revision rates and/or classification of cities for the purpose of CCA during the pendency of the Settlement, the same will be made applicable with effect from the applicable date as notified by the Government of India.

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13) SELF LEASE: Effective 01.10.1998, Self Lease payments will be made @ 40% of

notional maximums of applicable salary grade of employee. The details are given hereunder: Grade� Grade

Notional Maximum (Rs.) �Notional Maximum (Rs.)

� R-00�5,000��R-01�7,105��R-

R-00 5,000 R-01 7,105 R-02 7,685 R-03 8,760 R-04 9,355 R-05 9,950 R-06 10,490 R-07 12,575 R-08 13,370 R-09 14,110 R-10* 15,660

* Created effective 23.5.2002

MAINTENANCE & REPAIRS AMOUNT: The Maintenance expenses presently being paid to the workmen shall continue to be paid at the current amount in the applicable grade. However, in case a workman is promoted from one grade to another grade, he will be paid the M&R amount as applicable to the promoted grade. The workmen who will be joining the Corporation on or after the date of signing of the settlement will be entitled for Self Lease payment but will not be eligible to receive maintenance and repair payments. However, the existing workmen who are on the payroll of the Corporation as of date of signing of the Settlement and have not availed Self Lease facility, will be eligible to avail Self Lease along with M&R applicable to their grades as and when they opt for Self Lease. The quantum of Revised Standard Rent Recovery and other terms and conditions will be advised through an administrative circular. All other conditions stipulated in the Self Lease circular (issued in October 1997) remain unaltered.

14) LEAVE FARE ASSISTANCE (LFA) AND LEAVE TRAVEL CONCESSION( LTC)

ACTUALS OR LFA (ENCASHMENT) :

i) LFA / LTC ACTUALS OR LFA (ENCASHMENT) BLOCKS:

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Year LFA / LTC (Actuals) or LFA (Encashment)

1998 - 2000 LFA 2000 - 2002 LFA 2002 - 2004 LTC actuals or LFA encashment 2004 - 2006 LFA 2006 - 2008 LTC actuals or LFA encashment

ii) LFA:

The lumpsum LFA will be based on the number of years of service in the Corporation. The revised amounts will be effective from 01.10.1998. The workmen will be paid applicable prorated payments after adjusting the payment already paid for the block 1998 - 2000. For calculating the number of years of service, the date of application for availing LFA would be taken. Length of service �

Length of service 1998- 2000 (block

1998- 2000 (block 2000- 2002

(block)�

2004-2006 (block)

Upto 7 years Rs.9000/- Rs.10000/-� 7 to 11 years Rs.10000/- Rs.12000/-� 11to 18 years Rs.11200/- Rs.13200/-�

Above 18 years Rs.12400/- Rs.14400/-

(iii) LTC (actuals): A) Air Travel facility for Port Blair or Agatti :

Effective the date of signing of the settlement, it is agreed to introduce air travel facility to the workmen and eligible members of their families while availing LTC either to Port Blair ( Andaman & Nicobar Islands ) or to Agatti (Lakshwadeep). However, travel entitlement from Mumbai to Chennai or Kolkata ( for journey to Port Blair ) or to Trivandrum ( for journey to Agatti ) will be regulated within the to & fro ceiling by the shortest route as per the existing entitled class of travel. The said facility would be available for those workmen who are eligible to travel by IInd AC Sleeper / Ist Class and AC Chair Car. The said facility of Air Travel facility for Port Blair or Agatti would be available only once during the entire service of the workman in the Corporation. Further, this facility will be operated based on the allocated annual budget and on first cum first served basis and against the opted block of LTC. The workman who could not travel either to Port Blair or Agatti during the LTC Block due to non availability of budget, one year extension of such LTC block shall be granted.

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b) Daily Allowance on LTC:

Effective date of signing of settlement, it is agreed to introduce Daily Allowance @ 100% of the applicable rate for self, spouse, dependent parents (residing with the workmen) and dependent children subject to maximum of 2 children (above 5 years), maximum of 10 days per person for the actual number of nights spent while availing LTC. However, during the day transit period, the workmen and the eligible members of the family will be entitled for Daily Allowance @ 75% ( at the rate applicable for other cities ) within the overall ceiling limit of 10 days. The details of Daily Allowance are given as under:

Upto 30.9. 2003

Class of City Below Basic Rs.8111/- Basic Rs.8112/- & above�

Metros / A Class Other Cities

Rs. 280/- per day/per person Rs. 240/- per day/per person

Rs. 310/- per day/per person Rs. 280/- per

day/per person Effective 1.10.2003, the Daily Allowance will be operated through Administrative Circular.

c) LTC (actuals) - Groups: While availing LTC actuals, the workmen shall be permitted to travel in two groups.

d) LTC (actuals) - Higher class of travel: While availing LTC the workmen will be allowed to travel by higher class of travel/Air. However, the reimbursement shall be limited to the actual expenses incurred by the workmen for both ways or the cost of to and fro fare for the place of destination by entitled class by shortest route whichever is lower.

(iv) LFA Encashment: As per the existing policy, in a block of 4 years, the first half of 2 years will be LFA and in the second half of 2 years , the workmen is given option to avail LTC or LFA. It is agreed that in the second block of 2 years the workmen will be allowed to avail the actual LTC with Daily allowance or LFA encashment @ 3800 kms to the extent of 100% of rail fare of entitled class for self, spouse and dependent children subject to a maximum of 2 dependent children. The children between the age 5-12 years will be entitled for 50% of the rail fare.

The procedure for availment of LFA / LTC actuals / LFA encashment will be announced through administrative circulars.

15) ACTING ALLOWANCE:

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Effective the date of signing of the settlement, Acting allowance will be revised as under : Upto 30.09.2003 1.10.2003 to 30.09.2008 One Cluster to another Cluster

Rs. 30/- per shift / day Rs. 40/- per shift / day�

Acting in Management Rs. 40/- per shift/ day Rs. 60/- per shift/ day�

16) TRANSPORTATION BENEFITS: a)Transportation reimbursement : Effective 01.10.1998, the workmen owning motorcycle / scooter / mopeds will be reimbursed the following amount as transportation expenses : -

Upto 30.09.2003 1.10.2003 to 30.09.2008 Motorcycle / Scooter Rs. 600/- per month Rs.800/- per month Moped Rs. 425/- per month Rs.450/- per month

b) Transportation Allowance: Effective 01.10.1998, the workmen who are not claiming any transportation reimbursement as stipulated in Clause 16 (a) will be paid the following amount:

Upto 30.09.2003 1.10.2003 to 30.09.2008 Metro / ‘A’ Class Rs. 350/- per month Rs.400/- per month

17) CHILDREN EDUCATION ALLOWANCE: Effective 01.10.1998, Children Education Allowance ( max. 2 children) will be revised as follows :

Upto 30.09.2003 01.10.2003 to 30.09.2008 Upto Xth Standard Rs. 150/- per child / per

month Upto Professional Courses

Rs. 200/- per child / per month

Thru’ Administrative

circular

18) CASH HANDLING ALLOWANCE:

Effective the first day of the month following the month of signing of the settlement, Cash Handling Allowance will be revised as follows.

Upto 30.09.2003 1.10.2003 to 30.09.2008 Rs. 150/- per month Rs. 175/- per month

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19) WASHING ALLOWANCE:

Effective 01.10.1998, Washing Allowance will be revised as under :

Upto 30.09.2003 1.10.2003 to 30.09.2008� Rs. 80/- per month Rs. 100/- per month

Washing allowance shall not be admissible to those workmen whose work clothes are being washed by the Corporation.

20) SHIFT ALLOWANCE: Effective 01.10.1998, Shift Allowance will be revised as under:

Upto 30.09.2003 1.10.2003 to 30.09.2008 Morning Rs. 25/- per shift Rs. 30/- per shift Evening Rs.30/- per shift Rs.40/- per shift Night Rs. 50/- per shift Rs. 60/- per shift

Workmen will be eligible for shift allowance if they are required to work for a period of 4 hours or more on shifts and 3.5 hours in case of General Shift. Workmen when assigned to 12 hour shift duties, will be eligible to receive 1.5 times shift allowance for such extended shifts, rate as applicable. Shift allowance will not be considered for any other payment/allowance or benefit. Clause 9.4 (a) (b) and 9.5 of Settlement dated 17.04.1996 will remain unaltered.

21) CALL BACK ALLOWANCE:

Effective the first of the month following the month of signing of settlement, payment of call back allowance will be revised as under:

Upto 30.09.2003 1.10.2003 to 30.09.2008 Rs. 50/- per shift Rs. 80/- per shift

The following procedure would be adopted for payment of overtime/CDO whenever a workman is called back for duty.

(a) Shift department and / or reliever to reliever in shift: In case of workmen staying at HP Nagar (W), they should report on duty within one

hour from the time the Call back is made and in case of workmen staying at other than HP Nagar (W), they should report on duty within two hours from the time the Call back is made.

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If they report within the stipulated time mentioned above and work till the end of the shift, they will be paid 8 hours Overtime.

The said Clause will applicable to the workmen who are wroking in Shifts in

Instrumentation & Electrical Department (FR & LR). (b) General Shift: In case of workmen staying at HP Nagar (W), they should report on duty within one

hour from the time the Call back is made and in case of workmen staying at other than HP Nagar (W), they should report on duty within two hours from the time the Call back is made.

If they report within the stipulated time mentioned above, they will be paid overtime

for actual number of hours worked, subject to minimum of 4 hours. (c) CDO:

If call back is made on National/Festival holiday or weekly off or Sunday and the workmen works 4 hours or more, a CDO will be granted + applicable Overtime.

22) DUTY ALLOWANCE:

• Effective the first day of the month of implementation of 48 hours per week working

hours, the Duty Allowance shall be paid @ 10% of the Revised Basic Pay and Personal Pay.

• The Clerical workmen who are working in 42 hrs per week will be required to work 48

hrs per week and they will be paid Duty Allowance @ 10% of Basic + Personal Pay as against 8% of Basic, as and when the 48 hrs per week is implemented in Mumbai Refinery.

Effective 1.10.1998 the existing Clerical workmen presently working in 42 hrs per week will be paid Rs.125/- per month which will not attract any other consequential benefits. However, the amount already paid as Duty Allowance will not be recovered. The Duty Allowance of 8% being paid for working 42 hrs per week will be discontinued effective the 1st day of the following month of signing the settlement.

23) MEAL ALLOWANCE:

Effective the date of signing of the settlement, in case workmen are asked to go out of the work location on official duty and remain outside during lunch break and do not avail subsidised meal at any other location of the Corporation or upon return within the same location, Meal Allowance will be paid as follows per meal foregone.

Upto 30.09.2003 1.10.2003 to 30.09.2008 Rs. 25/- Rs. 30/-

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24) ATTENDANCE BONUS:

If a workman does not avail any kind of leave during a continuous period of two months (without any deduction of wages in those months) and he is present on all the working days, he will be entitled for attendance bonus. The attendance bonus amount will be paid in the following month of eligibility through salary. The details are given as under :

Upto 30.09.2003 1.10.2003 to 30.09.2008� Rs. 150/- (two months) Rs. 200/- (two months)

The availment of CDO will not be considered as leave availed for the purpose of payment

of attendance bonus. The attendance bonus amount will be paid in the following month of eligibility through salary.

25) ASPHALT ALLOWANCE:

The workmen who are in Process and Maintenance and assigned to Asphalt Site B temporarily will be paid Asphalt Allowance of Rs.3/- per day. The above allowance is payable subject to meeting the existing norms for filling the drums per day/shift. The existing rates of incentive payment related to daily average production for each month remains unaltered. Those who are assigned on a regular basis will be paid Asphlat Allowance at the rate of Rs. 80/- per month.

26) CORPORATION’S ASSISTANCE TO DRIVERS:

Effective the first day of the month, following the month of signing of the Settlement, if such drivers are acquitted by the Court, the Corporation will reimburse actual Legal Fees, subject to maximum of Rs. 5000/- on production of adequate proof. The drivers will be entitled to time-off for attending the Court proceedings.

27) REDEPLOYMENT / RETIREMENT BENEFITS:

For efficiency purpose or business needs, if any change in the layout of plants/office and machinery, etc., are required to be carried out or if any reallocation, re- organisation, re- adjustment, reassignment, transfer of personnel to be affected in similar jobs and grade, the unions agreed to co-operate with the Management in effecting the required changes. Further, it is agreed that, in case any surplus manpower is generated due to the above or introduction of technology or upgradation of existing technology, increase in working hours, the surplus manpower will be reassigned / redeployed in any other processes / section within Mumbai Refinery as per requirement without adversely affecting the benefits of the workmen. These changes will be discussed and finalised with the Unions before implementation of the same. Effective the first day of the month, following the month of signing of the Settlement, Transfer benefits would be as follows :

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Request Transfer

Travel for Self & dependent members of the Family by entitled class.

Transfer against Notified vacancy

One month Basic Pay + Dearness Allowance + Transportation of Household effects + Travel for self and family by entitled class.�

Redeployment (outside the city )

One month Basic Pay + Dearness Allowance + 30 days Daily Allowance + Transportation of Household effects + Travel for Self in case workman is moving himself. However, in case the workman shifts his family to the new location, he will be entitled for 30 days Daily Allowance in addition to the above 30 days including travel for dependent members of family.�

Transfer consequent to Disciplinary action�

Travel for self & dependent members of family by entitled class + Transportation of house hold effects.

Retirement One month Basic Pay + Dearness Allowance + Transportation of Household effects + Travel for Self and dependent members of family by entitled class.

Local Transfer In case of local transfers from one location to another location within the City, the workmen will be paid Rs. 1,500/- (on production of proof ) for transportation of household effects / personal effects, subject to change of residence .

In case an employee transferred / redployed the details of class of travel, insurance, transporation charges, joining leave etc. are given as under:

Class of Travel Upto Basic Rs. 8,111/- : IInd Class Basic Rs. 8,112/- & above : II nd AC Sleeper / I st Class / Chair Car

Joining Leave (applicable on transfer outside city)

5 days : Administrative Office workmen 6 days : Other than Administrative Office workmen (calendar days)

Transportation of household effects

One Rail Wagon OR One Truck load (in case of rail link is not available)�

Loading / Unloading of Household effects

Rs. 350/- per truck at each end / Rail Wagon on production of proof.�

Insurance Actual subject to maximum of Rs. 750/-�

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28) COMPUTER COMPENSATION:

Effective the month, following the month of signing of the Settlement, Computer Compensation will be paid as under:

BASIC SALARY AMOUNT OF COMPENSATION Upto Rs. 6964/- Rs. 95/-

Rs.6965 to Rs. 8312/- Rs. 120/- Rs.8313/- & above Rs. 150/-

However, in case of any workmen who is drawing more amount of compensation than the amount mentioned above upon signing of settlement the same will be protected till they reach next Basic slab.

29) FESTIVAL ADVANCE: Effective the date of signing of settlement, workmen who have not taken festival advance, will be entitled to receive Festival Advance of Rs. 4000/- per year. The above advance will be recoverable in 10 equal monthly instalments.

30) FURNITURE LOAN: The workmen who have put in 5 years service in the Corporation will be eligible to receive Furniture Loan subject to their take home salary, after providing for all loans and installments not being reduced to less than 35%. The entitlement of Furniture Loan for each salary grade is given as under:

GRADE AMOUNT (Rs.) R-01 TO R-03 6,000 R-04 TO R-06 7,000

R-07 8,000 R-08 9,000

R-09/R-10 10,000 The above loan will be interest free and will be recovered in 72 equal monthly installments. The said policy will be administered through an administrative circular. The Furniture Loan policy will be reviewed after a period of 6 years from 01.07.2001.

31) CONVEYANCE FOR ATTENDING TRAINING PROGRAM: In case of any workman is nominated for the training programme and he/she attending

the same, they will be entitled to receive actual conveyance reimbursement subject to

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maximum of Rs.65/- per day to and fro. (upto 30.9.2003) and the same will be reviewed thereafter.

32) TWO WHEELER VEHICLE LOAN:

Effective the first day of the month, following the month of signing of the Settlement, the overall limit for purchase of two wheeler vehicle will be increased to Rs. 70,000/-. Further, the workmen in Salary Grade R-09/R-10 will be allowed to purchase a 4-wheeler within the overall limit of Rs. 70,000/- of two wheeler vehicle loan. In addition to the above, an additional loan of Rs. 10,000/- maximum subject to actuals, will be given to cover registration, comprehensive insurance, road tax etc. in case of purchase of 4-wheeler. However, transport reimbursement will be as applicable to Scooters / Motor cycle as per Item 16 (a) above.

33) COMPUTER LOAN IN LIEU OF REPEAT TWO WHEELER VEHICLE LOAN : Effective the date of signing the settlement, the workmen would be allowed to purchase a vehicle as above or a computer in lieu of the repeat vehicle loan as per the vehicle loan policy. However, in case a workman opts for purchase of computer in lieu of repeat vehicle loan, the maximum amount shall be limited to Rs. 50,000/- or actuals (whichever is less). In the event of a workman opting for availing computer loan in lieu of repeat vehicle loan, the workman can continue to retain his vehicle and will be eligible to receive transportation reimbursement till the workman owns his vehicle. All other terms and conditions related to repayment and interest would be in line with the existing Vehicle Loan Policy. An administrative circular will be issued for availment of computer loan.

34) DAILY ALLOWANCE / TRANSPORTATION:

In case of workmen who are required to travel from one town to another town and are required to stay overnight at the location other than the normal place of posting, they will be entitled for the following: For the period upto 30.09.2003: Below Basic Rs. 8111/- Basic Rs. 8112/- & above� Class of Travel� IInd Class II Class AC Sleeper / I Class /

CC Local Conveyance Metros/A Class Other Cities

Rs. 60/- per day Rs. 50/- per day

Rs. 65/- per day

Rs. 60/- per day � Hotel Facilities Metros A Class Other Cities

Rs.700/- per day Rs.400/- per day Rs.250/- per day

Rs.750/- per day Rs.450/- per day

Rs.300/- per day� Daily Allowance (effective 01.10.98) Metros / A Class Other Cities

Rs. 280/- per day Rs. 240/- per day

Rs. 310/- per day Rs. 280/- per day�

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Daily Allowance (Broken periods) Below 6 hours 6 -12 hours Above 12 hours

25% of applicable daily allowance 50% of applicable daily allowance

100% of applicable daily allowance�

For the period from 1.10.2003 to 30.09.2008 : Below Basic Rs. 8111/- Basic Rs. 8112/- &

above� Local Conveyance Metros/ A Class Other Cities

Rs. 70/- per day Rs. 55/- per day

Rs. 80/- per day Rs. 65/- per day

Daily Allowance Metros/ A Class Other Cities

Thru’ administrative circular �

Hotel Facilities The reimbursement of Hotel facilities will be based on production of hotel bills and limited

to actual amount spent on boarding subject to maximum limits specified above plus applicable taxes will be paid extra. In such cases, workmen will be entitled to receive normal Daily Allowance less Rs.20/-.

PRODUCTIVITY IMPROVEMENTS : It is recognised / appreciated by all concerned, that the Corporation should improve its efficiency and productivity in order to sustain its competitive position in the market and maintain its earning capacity. Further, both the parties recognise the need of an hour to introduce new technology, upgrade the existing technology, optimum utilisation of the existing resources, etc in order to face the challenges and also to sustain in the business, it is proposed as follows : - 35) WORKING HOURS:

Effective 01.07.2002 the working hours of Mumbai Refinery will be as follows :

Clerical workmen: The clerical workmen in Administrative Department will work for 40 hours per week. It is further agreed that the working hours for clerical workmen working in Administrative Departments will be increased in future whenever requirement arises. The duration of increase in timings will be for a minimum period of 6 months and they will be paid applicable Duty allowance @ 10% Basic + Personal Pay. The workmen working in Canteen/ Cafeteria, HP Nagar Housing Complex (East/West), Medical Department, Telephone Section and Security will be required to work 48 hours in

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a week and they will be paid Duty Allowance @ 10% of Basic Pay + Personal Pay per month. Further, Field Clerical workmen presently working in 42 hrs in a week will work 48 hrs in a week and also be paid Duty Allowance @10% of Basic Pay + Personal Pay per month.

The clerical workmen will be rotated periodically to give overall exposure and the periodicity of the same will be 2 year. The modalities will be discussed and finalised with the Unions before implementation of the same.

Other workmen : The working hours for workmen other than Clerical workmen will be increased to 48 hours per week. The workmen working 48 hours per week will be eligible to receive Duty Allowance @ 10% of Basic Pay + Personal Pay per month.

36) OVERTIME PAYMENT : Consequent to increase of working hours as above, the OT divisor for the workmen working for 48 hours in a week would be 208 and the divisor for the workmen working for 40 hours per week would be 173. The OT components will be Basic Pay + Personal Pay + Dearness Allowance (all actually drawn by the workmen during that particular month) and actual HRA (Max.Rs.1000/-) + actual Duty Allowance (Max.Rs.450/-). Overtime at the rate of double the wages, will be paid for work in excess of 9 hours in a day on any working day or work in excess of 48 normal working hours per week. Effective the date of signing of the settlement, the overtime formula is given in Attachment ‘B’. While making OT arrears payment for the period 01.10.1998 till the date of signing of the settlement, the OT Divisor / OT Formula (as applicable between the period 01.10.98 till date of signing of the Settlement) will be made applicable. The availment of CDO arising out of working on statutory off, will be treated as working day, for the purpose of calculating 48 hours in a week. 37) JOB FLEXIBILITY:

All the designations/positions of LR & FR will be clustered based on skill requirement i.e. Skilled, semi-skilled, unskilled. The workmen within the cluster will be required to perform all the jobs pertaining to their category irrespective of their grade (in case of LR-within LR and in case of FR-within FR).

38) RATIONALISATION MEASURES:

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It is agreed to rationalise the process / operation, manning of positions, deployment of manpower, change of layout, introduction of new techniques/technology, change of practices to meet customer needs. These changes will be discussed and finalised with the Unions before implementation of the same.

39) LEAVE ADMINISTRATION :

For availing all types of leave (other than sick leave and casual leave), the workmen will be required to obtain prior approval from immediate supervisor. In case of sick leave the same is to be informed to the concerned superiors as soon as possible within a reasonable time and approval to be obtained subsequently. Casual Leave will be availed with the prior approval. In exceptional cases where Casual Leave was not sanctioned in advance it will be regularised through application upon resuming duty. The modalities of administering all types of leave will be issued thru a Administrative circular.

40) NATIONAL / FESTIVAL HOLIDAYS: The total number of National / Festival Holidays in a calendar year will not exceed 12

days which includes Republic Day, Independence Day, Gandhi Jayanti, Ambedkar Jayanti and any other mandatory holidays declared by the Central/State Government, initially or subsequently. However, there will be an increase in entitlement of Casual Leave from 10 days to 12 days per annum.

41) UNAUTHORISED ABSENTEEISM: For the purpose of calculating eligibility period for availing all loans, the unauthorised

absence period will not be considered. In case of workmen who already availed any loan and continuously remain absent unauthorisedly for a period of more than 1 month, the rate of interest for that particular period will be as per the prevailing Bank rates.

"Unauthorised absence" means: (a) Absenting on loss of pay after exhausting all the leave to his credit. However, in case

of absence on account of sickness duly approved by Corporation’s Chief Medical Advisor, the same will not be treated as "unauthorised absence".

(b) Absenting from duty without approved Privilege Leave. (c) Absenting from Duty without intimation for availing Casual Leave ( prior /

subsequent).

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42) LABORATORY:

(i) All samples received from OCC, BPCL, Vigilance, Marketing and Coastal will be tested / analysed and priority for testing will be decided by the Supervisor with existing manpower during normal shift working hours. In case these samples cannot be analysed/ tested in the scheduled shift due to work load, the same will be carried out in next shift.

(ii) All the tests of all the samples will be carried out as per the written standard

procedures individually and the Lab Analysts will be given adequate training as per requirement.

(iii) Clause 27.3 of settlement dated 17.4.1996 remain unchanged.

43) SAFETY: Both the Parties will continue to make an endeavour to provide and maintain safe,

healthy and congenial working conditions and strive towards increase in productivity, maintaining and improving product quality and service.

The workmen will abide by all the instructions with regard to safety of the location,

wearing of uniforms and personal protective equipment at all the time while on duty. 44) ATTENDANCE RECORDING SYSTEM:

The workmen shall report at their work place at their respective shift timings and continue to punch their time card / attendance card at the time of reporting / leaving the work location. Appropriate deductions of leave/salary shall be made in case of late reporting. However, late reporting upto 15 minutes will be permitted to a maximum of 3 occasions in a month in case of emergencies.

45) PAY ANOMALY:

As a consequence of the implementation of the terms of the Settlement, if the situation arises where some of the employees senior in grade and designation are drawing less Basic Salary than their junior colleagues in the same grade and designation on 30.9.1998, it is agreed to constitute an ‘Anamolies Committee’ to examine such cases and that the Basic Pay of such employees shall be brought atleast on par of such Junior employees as on 30.9.1998.

46) PAYMENT OF ARREARS:

Arrears will be paid (including Overtime payments) to all the workmen consequent to the signing of the settlement, within 4 months from the date of signing of this settlement

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after adjusting the adhoc adjustable advance paid against the Pay revision effective 1.10.1998 and also the advance amount paid upon signing of Memorandum of Settlement against the arrears payment. The workmen who have retired from the service of the Corporation or promoted from Non-management cadre to Management cadre between the period from 1.10.98 till the date of signing of the settlement or legal dependents of those who have expired while in service during the same period, shall be paid the following payments under the terms of settlement upto the date of their retirement / promotions / death as a one time prorated payment :

1) Fitment Benefits 2) HRA 3) CCA & 4) Any other consequential benefits except retirement benefits. It was agreed that the purpose of determining pension benefit under the Superannuation Benefit Scheme in respect of those who have retired / expired during the period October 1, 1998 upto the date of signing of the settlement, the applicable benefits of additions to salary, D.A., etc., will be reckoned subject to the approval of the Board of Trustees along with additional contribution as may be applicable. Adhoc adjustable advance paid to the employees will be recovered. 47) The parties to this Memornadum of Settlement hereby agree to sign the Settlement under Section 12 (3) of ID Act, 1947 before Regional Labour Commissioner (Central), Mumbai in due course. 48) INTERPRETATION / IMPLEMENTATION OF SETTLEMENT: Both the parties shall fully abide by this Settlement in true spirit. In case there is any dispute regarding implementation of this Settlement or interpretation of any of its provisions the parties will resolve the differences through mutual discussions, failing which they will resort to the machinery prescribed under the Industrial Disputes Act, 1947. 49) Management stated that this MOS for giving the said benefits to the workmen of

Mumbai Refinery is subject to required approval from the competent authority and also from the Government authorities as per the Government guidelines.

The Management represented by: Attachment ‘A’

Rrevised DA rates

Quarter Index %ge

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October to December 1998 2010� 0 January to March 1999 2122� 5.6 April to June 1999 2077� 3.3 July to September 1999 2051� 2 October to December 1999 2087� 3.8� January to March 2000 2143� 6.6 April to June 2000 2123� 5.6 July to September 2000 2156� 7.3 October to December 2000 2186� 8.8 January to March 2001 2207� 9.8 April to June 2001 2192� 9.1 July to September 2001 2,209 9.9� October to December 2001 2,278 13.3� January to March 2002 2,309 14.9� April to June 2002 2,304 14.6�

Attachment ‘B’ OVERTIME FORMULA A. (i) For work in excess of 9 working hours on any working day or for work in excess of 48

hours in any week. 2 x monthly salary

208/173 (ii) For working between normal working hours to 9th hour

1 x monthly salary 208 / 173 B. For work on a Saturday for a 5 day week department upto normal working hours : 1 x monthly salary 173 C. For work of Weekly-off / Sunday : (a) for less than 48 hrs per week 1 x monthly salary plus CDO 208 / 173 (b) 48 hrs per week or more 2 x monthly salary plus CDO 208 D. For work on National / festival holiday : 2 x monthly salary Plus CDO

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208 E. For work on National / festival holiday where the holiday coincides with Weekly-off and the workmen called for work : 2 x monthly salary plus CDO 208 If the weekly-off coincides with a National / festival holiday and the workman not called for duty, he will receive single day wage. F. If a workman continues his work previous shift and overtime working hours spill over to the off-day, in such case workman will be paid overtime as follows : 2 x monthly salary 208 However, if due to spill over, the off is less than 24 hours before the start of the next normal shift, workmen will be entitled for a CDO also.

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